Reports suggest that Piranha Games, the developer behind MechWarrior 5: Clans, has recently carried out a round of layoffs.
Former staff members of the Canadian company took to LinkedIn to reveal that the layoffs impacted various departments, including writing, FX/VFX, environment and technical art, level design, and software engineering.
As per an employee, the downsizing was part of an “economic restructuring” effort.
GamesIndustry.biz has reached out to Piranha Games for official confirmation and details on the number of affected employees.
In January last year, Enad Global 7 (EG7), a Swedish gaming company, let go of staff at Piranha Games and closed down Toadman Interactive.
The layoffs impacted 38 individuals at Piranha Games following a strategic review post the release of MechWarrior 5: Clans.
EG7 CEO Ji Ham stated, “Despite the team’s exceptional efforts at Piranha, the game did not attract as many new players or grow its core audience as anticipated, resulting in sales targets not being met and necessitating certain measures.”
The decision to close Toadman Interactive stemmed from “ongoing industry challenges and the studio’s struggle to secure new contract opportunities at a required pace.”
In January 2020, Toadman, along with publisher Sold Out and creative agency Petrol, joined forces to form EG7. Later that year, EG7 acquired Piranha Games for $24.1 million.